Reference: 08-07
Paxton Corp has provided the following data concerning its operations last month: $$\begin{array} { | l | l | }
\hline \text { Sales } & \$ 400,000 \
\hline \text { Variable expenses } & 250,000 \
\hline \text { Fixed expenses } & 100,000 \
\hline
\end{array}$$ Paxton Corp is a retailing organization.
-The contribution margin ratio is?

Question

Reference: 08-07
Paxton Corp has provided the following data concerning its operations last month: $$\begin{array} { | l | l | } 
\hline \text { Sales } & \$ 400,000 \
\hline \text { Variable expenses } & 250,000 \
\hline \text { Fixed expenses } & 100,000 \
\hline
\end{array}$$ Paxton Corp is a retailing organization.
-The contribution margin ratio is?

Quizplus · Accepted Answer

Contribution margin ratio = (Sales - Variable expenses) / Sales= (400,000 - 250,000) / 400,000= 150,000 / 400,000= 0.375= 37.5%

Reference: 08-07 Paxton Corp Has Provided the Following Data Concerning

Reference: 08-07
Paxton Corp Has Provided the Following Data Concerning